Hong Kong stock exchange wants to buy London counterpart

The Hong Kong stock exchange says it has started talks to buy the London Stock Exchange, and would value the British company at 29.6 billion pounds (NZ$57 billion).

The Hong Kong Exchanges and Clearing Ltd. said Wednesday that a deal would provide the London Stock Exchange with a key opening to Asian markets and underpin the British capital's role as a financial hub.

The offer comes at a time of heightened uncertainty for London and British companies because of Brexit, which threatens to create barriers to trade for the country.

A weakened pound has also made UK companies cheaper takeover targets.

The Hong Kong exchange is required to make a binding offer by October 9.